Public Policy

Xerox has a long-standing tradition of civic engagement. Our involvement in the political process and global public policy debate is a natural extension of our core values. We work with governments, others in our industry and the broader business community to advocate for public policies that support our business goals. On issues for which our experience and knowledge add an important perspective to public debate, the company seeks to educate policy makers, both directly and indirectly, and through various coalitions and trade associations. Through the Office of Global Government Affairs, we have interactions with governments and government organizations throughout the U.S. (at the federal, state and local levels) and around the world. We engage on issues that range from legal, trade, tax policy and financial activities to regulatory compliance, intellectual property and government procurement.

We promoted and participated in the creation of the European voluntary agreement to improve the environmental performance of imaging equipment, which commits producers to comply with strict environmental requirements in the design of their products above and beyond legal requirements.

We are actively engaged with European regulators in the creation of an EU ecolabel for imaging equipment and supplies and in the harmonization of public purchasing requirements for such equipment. We also act as the interface between DIGITALEUROPE and the European Commission on matters related to the EU's ENERGY STAR program.

Retirement Policy
We believe policy makers should foster a legal and economic framework that encourages employers to maintain and increase the number of workers who have access to employer-provided retirement security. We take our commitment to our employees, both current and retired, very seriously and will work with the U.S. Congress and the Administration to formulate policies that allow us to meet those commitments.

Free Trade
We support open markets and free trade. International trade is a powerful engine of global economic growth; economic growth, in turn, fosters job growth and improved living conditions and opportunities around the world. We support government-to-government negotiations aimed at liberalizing trading rules and opening markets, both on a bilateral and multinational basis. More open markets are critical both for our technology and particularly for our services, where we face numerous barriers worldwide. We believe that all participants must be responsible citizens of the countries in which they do business.

Intellectual Property
As a participant in the Coalition Against Counterfeiting and Piracy, we plays an active role in combating theft of intellectual property by counterfeiters that manufacture "knock-off" products. The coalition is a strong advocate of stronger laws against dealing in counterfeit goods and has developed best-practice guidelines that help companies protect their supply chains.

Competitiveness
Through our support of the Change the Equation initiative, which directs more resources to science, technology, engineering and mathematics (STEM) education, we focus on improving the nation's ability to compete on the global stage.

Corporate Taxation
We are working in support of U.S. corporate tax reform. The U.S. has the highest tax rates among large, industrialized nations. Corporate tax reform is needed if U.S. companies are to be fully competitive in overseas markets where 95% of the world's population lives.

State Legislation
Xerox promotes policy positions that make IT more effective in supporting State and Local Government missions, improve government technology acquisition processes, maximize the positive financial impact of IT investments, and create better outcomes for Americans served by State and Local Government agencies and programs. Our Office of Global Government Affairs has established a network of state and local government consultants whose responsibilities include monitoring legislation and policies that would impact our various government lines of business. Examples of our government business include annual budgets, regulation of credit card fees, health insurance exchanges, statewide and work zone speed enforcement and electronic toll collections.

Healthcare Reform
Comprehensive healthcare reform is essential for the long-term vitality of the U.S. economy. While the healthcare law passed in 2010 has some positive elements, significant reform continues to be needed to create a sustainable, high-quality system that is more accessible, less costly and more patient-centered. We support every citizen having access to quality and affordable health coverage, which is why any reform solution must address the core issues of the growing cost of healthcare. We believe in maintaining the Employee Retirement Income Security Act (ERISA), which provides employers with the ability to offer consistent benefits to employees.

As a board member of the following professional organizations and coalitions, Xerox has taken a leadership role in the employer community on efforts to reform the U.S. healthcare system:

National Coalition on Benefits (NCB): The NCB consists of 175 companies and trade associations. It is dedicated to working with Congress to maintain employers' ability to provide uniform health and retirement benefits to employees and retirees across state and local lines and to ensure that federal health reform initiatives preserve ERISA benefits.

American Benefits Council (ABC): ABC is a trade association whose corporate members either sponsor directly, administer or service retirement, health and stock compensation plans covering more than 100 million Americans. It is staffed by a team of professionals in the benefits field with expertise in investments, retirement, health insurance, accounting, actuarial science, banking, law, and benefits that represent plan sponsors to Congress, the courts and the regulatory agencies.

Professional Organizations and Associations
Trade associations around the world often play an important role in assisting our company with business development opportunities and citizenship activities, as well as in helping Xerox meet certain public policy objectives. We are a member of a wide array of trade associations. Any trade association dues, or portions thereof, that are not deductible for tax purposes are reported in our lobbying disclosure reports. Our senior managers play a leadership role in various organizations, such as the Business Roundtable, the U.S. Chamber of Commerce and the Technology CEO Council. These organizations develop and promote public policies that are considered important to our public policy interests and operations.

While we prefer to make political expenditures directly rather than through professional organizations and associations, Xerox, like all major corporations, is a member of various 501(c) organizations that may engage in political activities. While we may not necessarily agree with every position taken by each organization to which we contribute, we determine that the intended use of a contribution is consistent with our mission and core values before making a contribution to any such group. We inquire and make a reasonable effort to obtain from those associations where our dues and other expenditures total $25,000 or more, what portion of the dues or payments were used for lobbying expenditures or political contributions. To the extent it is reported to us, we disclose the non-deductible portion of our contributions annually.

U.S. based associations where our dues and expenditures in 2011 total $25,000 or more and what portion of our dues or payments were used for lobbying expenditures or political contributions:

Business Roundtable: The Business Roundtable has been actively engaged in shaping the debate on corporate tax reform, and is supportive of Xerox's goals for reform that will enhance the ability of U.S. companies to compete internationally. We participate in the policy formation and advocacy functions for the Business Roundtable's tax reform efforts. The Roundtable has also focused heavily on developments with the most burdensome of EPA's proposed regulations covering areas such as ozone, carbon emissions and boiler controls, proposing less costly methods of achieving EPA's overall environmental goals.

DigitalEurope: DigitalEurope is the pre-eminent advocacy group of the European digital economy acting on behalf of the information technology, consumer electronics and telecommunications sectors. They are dedicated to improving the business environment and to promoting industry's contribution to economic growth and social progress in the European Union.

Information Communication Technology Association of Canada (ITAC): ITAC is Canada's principal advocacy group for the information communications technology industry. As a leading member of ITAC, We play a key planning and development role which includes helping facilitate public-private sector dialogue through platforms such as the World Congress on Information Technology – the world's largest gathering of public and private sector executives in the information communications industry.

National Governors Association: The National Governors Association (NGA) is the bipartisan organization of the nation's governors. The NGA promotes visionary state leadership, shares best practices and speaks with a collective voice on national policy. Through NGA, governors identify priority issues and deal collectively with matters of public policy and governance at the state and national levels.

The President's Export Council (PEC): The PEC is the principal national advisory committee on international trade. The Council advises the President of government policies and programs that affect U.S. trade performance; promotes export expansion; and provides a forum for discussing and resolving trade-related problems among the business, industrial, agricultural, labor, and government sectors.

TechAmerica: TechAmerica is the leading voice for the U.S. technology industry, the driving force behind productivity growth and jobs creation in the United States and the foundation of the global innovation economy. It is the technology industry's only grassroots-to-global advocacy network, with offices and partnerships in state capitals across the country, Washington, DC, Europe, Asia and around the world. TechAmerica was formed by the merger of AeA (formerly the American Electronics Association), the Cyber Security Industry Alliance (CSIA), the Information Technology Association of America (ITAA) and the Government Electronics & Information Technology Association (GEIA).

Xerox Political Contributions
The Xerox Code of Business Conduct contains explicit information on our policies governing contact with government agencies, lobbying and political contributions. All Xerox employees are required annually to participate in training on the Code of Business Conduct and must certify adherence to the Code upon the conclusion of the course.

Corporate Funding
We have a long-standing policy that nothing of value may be given, paid, promised or offered – directly or indirectly – for any of the following: (1) political party, committee and/or candidate for any federal, state or local government office anywhere around the world; (2) independent expenditure or ballot measure committees; (3) electioneering communications; or (4) candidates for judicial office. We do not allow any employee or consultant to provide anything of value to any federal government employee. This policy was in place long before Congress put the standard into law for all corporations and organizations.

We have an established policy that does not permit any in-kind political contributions. In accordance with our Code of Business Conduct, the only authorized method to make political contributions on behalf of Xerox is through the Xerox Corporation Political Action Committee (XPAC).

Xerox Contributions to 527s in 2011
The following "527" organizations received support from Xerox in 2011. The name derives from Section 527 of the Internal Revenue Code, under which these organizations are tax-exempt. These organizations have a purely political focus, rather than one supporting an issue or cause. Xerox contributions to 527 organizations are made with corporate – rather than XPAC – funds.

Democratic Governors Association

Republican Governors Association

Oversight
The Corporate Governance Committee of the Xerox Board of Directors is responsible for overseeing the company's political and charitable contributions and receives annual reports on the Xerox Corporation Political Action Committee's (XPAC) activities.

The Vice President, Global Government Affairs is responsible for management of Xerox's participation in the political process. This position reports directly to our Senior Vice President, General Counsel and Corporate Secretary, who reports to the company Chairman and Chief Executive Officer.

We use outside legal experts to provide periodic oversight of the company's political activities.

XPAC is led by a Board of Trustees, which includes a cross-section of managers from Xerox who represent their unique business unit and geographic areas. A Contributions Committee appointed by the XPAC Board of Trustees and consisting of between 3 and 5 members is responsible for selecting, by majority vote, the candidates to receive a contribution from XPAC. The General Counsel, the Vice President of Global Government Affairs and the Manager, Global Government Affairs at Xerox oversee all spending.

Xerox Corporation Political Action Committee
The Xerox Corporation Political Action Committee (XPAC) is supported entirely by voluntary contributions from eligible Xerox employees, and all contributions go directly to candidate campaigns for political office. XPAC is nonpartisan and actively supports candidates and helps elect policymakers whose positions are consistent with our business values and strategies. XPAC contributions promote the interests of the company and are made without regard for the private political preferences of company officers and executives. We strictly prohibit the use of XPAC contributions to motivate or reward any official act.

Every proposed political contribution undergoes an internal review process to evaluate whether it is legally permissible and in the best interests of our company and our shareholders. In many cases, we may not agree with every position taken by a candidate whom we support.

XPAC discloses all contributions made and received on reports filed with the Federal Election Commission and the various state and local campaign finance commissions, as required by law. In accordance with XPAC's Articles of Organization, an audit of the accounting books of the XPAC shall be performed at least once during every two-year election cycle to assure compliance with the Federal Election Campaign Act of 1971, as amended, and its Regulations, and all other applicable laws.

Employee Involvement in Political Activities
While we encourage our people to participate in community and political activities, we do not endorse any organization or activity in which employees choose to participate; and we do not discriminate in favor of or against employees based on the organizations they choose to support. Employees will not be reimbursed directly or through increases in compensation for their personal political contributions and expenses.

Our Progress

"All of us at Xerox are determined to build a company that serves all its stakeholders - the shareholders who invest in us; the customers who trust us to make them better; the employees who bring their minds and hearts to our belief that good financial results and good citizenship are synergistic; the communities in which we live and work and that deserve our engagement; and, ultimately, the planet, which we all have an obligation to preserve and sustain."

Preserving the Planet

As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Water consumption has decreased 37% since 2007 and is down 15% in 2011 compared to 2010...
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Preserving the Planet

Scope 1 and 2 greenhouse gas emissions are down 36% and energy consumption is down 25% from 2002 in our Technology business. The reductions are the result of improved energy efficiency, new technologies and improved energy management practices...
See More

Preserving the Planet

In 2011, 100% of all of our new eligible products met the current ENERGY STAR (July 2009) requirements. Continued success in cutting the power consumption of our laser-based printing products has been achieved by adjustments in the fuser design...
See More

Preserving the Planet

The Xerox Green World Alliance reuse/recycle program for imaging supplies is central to our commitment to waste-free products. We currently have more than 35 countries participating in the Xerox Green World Alliance...
See More

Preserving the Planet

We are in the process of expanding Greenhouse Gas tracking to include Scope 3 emissions, beginning with employee business travel. We measured these 2011 Scope 3 emissions at 12K metric tonnes of CO2e, down 14% from 2010...
See More

Preserving the Planet

Reported toxic chemical releases and transfers were 15% lower than 2010, primarily due to the reduced production of older products. Methylene chloride releases and transfers, which account for over 50% of reported toxic chemicals...
See More

2011 Global RepTrak 100: The World's Most Reputable Companies

Sustaining Business | Public Policy

The Reputation Institute ranked Xerox 38th in its 2011 Global RepTrak 100: The World's Most Reputable Companies list. The study provides an assessment of companies worldwide that are most liked, trusted, and respected. The ranking is made by more than 48,000 consumers across 15 countries. The Reputation Institute measured the reputations of more than 1,000 of the world's largest companies on criteria such as citizenship, workplace, governance and leadership.

Read more about our rankings for sustainability, diversity, governance and ethics.

The Xerox Board of Directors: Maintaining independence

Sustaining Business

Based on standards for independence developed by the New York Stock Exchange, the Xerox Board of Directors is currently 90% independent. It includes one non-independent director: Xerox Chairman and CEO Ursula M. Burns.

Learn more about the Board's independence and our governance policies.

Voice of employee survey

Evolving the Workplace

74% of surveyed employees responded favorably to the statement "My work gives me a feeling of personal accomplishment" on our proprietary Voice of the Employee Survey.

The survey allows managers to create a personal pulse survey to assess their employees' satisfaction on their job, workgroup, manager, and on Xerox as a whole.

In the past three years, we have surveyed 100% of the global Xerox population in 48 countries and in 25 languages. Each manager receives a personalized report to assist in developing action plans where needed. In addition, we capture global trend data and employee ideas.

Employee Diversity – Women employees

Evolving the Workplace

We gain a competitive advantage as we continue to draw on the experience and creativity of a well-balanced, diverse work force. That means we're better able to understand and meet the changing demands for our products and services. Simply stated, a balanced work force makes good business sense.

49.8% of employees in U.S. are women and women represent 25% of the executive and senior level managers in the U.S. Diversity reporting is not tracked in most other countries.

Employee Diversity – Minority employees

Evolving the Workplace

Minorities represent 37.5% of employees and 13.2% of the executive and senior level managers in the U.S. Diversity reporting is not tracked in most other countries.

Employees with different ways of thinking – and different ways of perceiving our world – are employees who create innovative solutions. In a business like ours, whose lifeblood is fresh ideas, this variety of perspectives is a priceless resource – and a key to achieving critical business results.

Monitoring the safety of our employees

Evolving the Workplace

We strive toward a goal of zero injuries, with continual improvement in safety performance in both injury frequency and severity. In 2011, there was a 1% reduction in the frequency of injuries compared to 2010 performance. Since 1996 there has been a 56% reduction in total recordable injury rate.

Reporting and monitoring of injury frequency rates occurs for different geographies and organizations. The reporting of work-related injuries, illnesses and fatalities is based on the same criteria for all operations, worldwide, regardless of the geography in which they reside.

Preventing injuries and illnesses

Evolving the Workplace

We strive to prevent all injuries and illnesses and place special emphasize on the elimination of serious incidents – those that are significant enough to require missed days of work. 2011 proved to be a challenging year and additional mitigation initiatives have been put in place. Since 1996 there has been a 48% reduction in the days away from work injury rate.

Topping the competition

Serving Customers

Xerox is the leader in equipment revenue market share for the tenth straight quarter (1Q2012). We offer the industry's broadest portfolio of document technology and services for businesses of any size, in any industry, anywhere around the world.

Innovating for the future

Serving Customers

The Xerox group garnered over 1,600 patents total. Xerox was granted 1,030 U.S. patents and our joint venture in Japan, Fuji Xerox Co. Ltd., received 588 U.S. patents. Xerox and Fuji Xerox collectively invest about $1.5 billion annually in research, development and engineering.

Measuring customer satisfaction

Serving Customers

Service and support for Xerox products earned five consecutive industry certifications from 2006-2010. All forms of customer support – phone, on-line, on-site – were evaluated by independent service industry experts who recognized our support services as among the best in class.

Investments in J. D. Powers certification in prior years have ensured process excellence in technical service delivery. In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations.

The new process solicits feedback from our technology customers around the globe and provides detailed insights that help us identify systemic issues and make the necessary changes that ensure strong customer satisfaction. Improved closed-loop follow-up processes also enable faster responses to individual problems.

2008

2009

2010

Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support.

Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support.

Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support.

Industry analysts rate Xerox products and services as market leaders

Serving Customers

The Xerox commitment to our customers has gained worldwide recognition. Independent Industry analysts rate our products and services as leaders in multiple categories. Helping customers better manage their print environment led Gartner to place us in the Leaders Quadrant of the 2011 Magic Quadrant for Managed Print Services Worldwide, while International Data Corp. (IDC) MarketScape lists us as a Market Leader for managed print services for the third year in a row. And it's not just our award-winning technology that garners all the accolades. Gartner placed Xerox as a global leader in the Comprehensive Finance and Accounting Business Process Outsourcing arena and also noted our leadership for Help Desktop Outsourcing Services in North America.

The Xerox Foundation

Caring for Communities

In 2011, 1,672 non-profit organizations, colleges and universities received direct financial support from the Xerox Foundation through grants, matching gifts or community involvement activities. We focus our investments in the following areas:

The Xerox Community Involvement Program

Caring for Communities

The Xerox Community Involvement Program marries the voluntary spirit of our employees with Xerox funding to participate in the betterment of the communities where we live and work. In 2011, 12,291 Xerox people participated in 751 projects and the Xerox Foundation invested over $1 million in the program.

Conserving water

Preserving the Planet

As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Water consumption has decreased 37% since 2007 and is down 15% in 2011 compared to 2010.

Reducing greenhouse gas emissions

Preserving the Planet

Scope 1 and 2 greenhouse gas emissions are down 36% and energy consumption is down 25% from 2002 in our Technology business. The reductions are the result of improved energy efficiency, new technologies and improved energy management practices.

Having met our Energy Challenge 2012 goal, we are in the process of establishing a new baseline and target.

New products achieve the ENERGY STAR® rating

Preserving the Planet

In 2011, 100% of all of our new eligible products met the current ENERGY STAR (July 2009) requirements. Continued success in cutting the power consumption of our laser-based printing products has been achieved by adjustments in the fuser design, changes to the properties of the toner, more-efficient electronic controls and the workings of the xerographic system as a whole.

See more detailed information on Energy Star ratings for Xerox Products.

The Xerox Green World Alliance

Preserving the Planet

The Xerox Green World Alliance reuse/recycle program for imaging supplies is central to our commitment to waste-free products. We currently have more than 35 countries participating in the Xerox Green World Alliance. Worldwide, our customers returned more than 3.43 million cartridges, toner containers and other used supply items in 2011. Although Xerox's consumables returns programs have been in existence for two decades, we enhanced the program in 2010 by launching an improved return process for our Canadian operations.

Reducing emissions by reducing employee air travel

Preserving the Planet

We are in the process of expanding greenhouse gas tracking to include scope 3 emissions, beginning with employee business travel. We measured these 2011 scope 3 emissions at 12,000 metric tonnes of CO2e, down 14% from 2010. A decrease in employee air travel has been achieved through the increased use of videoconferencing and other technology. We're currently in process of collecting scope 3 emissions data on product transportation from third-party carriers.

Assessing scope 3 emissions is challenging but we are making progress and are making our calculations according to the WRI Scope 3 Accounting Standard. We will use the information to prioritize our greenhouse gas emission reduction opportunities and as part of our carbon impact assessments.

Reducing toxic releases

Preserving the Planet

Reported toxic chemical releases and transfers were 15% lower than 2010, primarily due to the reduced production of older products. Methylene chloride releases and transfers, which account for over 50% of reported toxic chemicals, were lower by approximately 15 metric tonnes.